China's central bank rejects IMF advice on yuan: report
Officials and economists at the IMF, which has a mandate to give advice to member countries, said Beijing should pursue a more flexible exchange rate, for the sake of both the Chinese economy and a more balanced global economy.
By PTI |
BEIJING: A senior official from China's central bank has rejected calls from the International Monetary Fund for faster progress towards a more flexibile currency regime, state media said Monday.
"Biased advice would damage the fund's role in safeguarding global economic and financial stability," said Hu Xiaolian, deputy governor of the People's Bank of China, according to the China Daily.
"The fund ... should respect its member countries' core interests and actual economic fundamentals," Hu was quoted as saying at the meetings of the IMF and the World Bank in Washington at the weekend.
Officials and economists at the IMF, which has a mandate to give advice to member countries, said Beijing should pursue a more flexible exchange rate, for the sake of both the Chinese economy and a more balanced global economy.
However, Hu said the yuan's role in rectifying global economic imbalances should not be exaggerated, adding that more attention should be paid to growing protectionism so as to safeguard the health of the world economy.
China's major trading partners, led by the United States, have persistently complained that the yuan has been significantly undervalued, giving Chinese exporters an unfair competitive edge of lower prices.
Trade frictions are rising as the United States, with a 223-billion-dollar trade deficit with China in 2006, last week formally lodged two complaints on copyright abuses in China and market access to the World Trade Organisation.
Last month, Washington decided to impose penalty tariffs on Chinese paper exporters, reversing a 23-year-old US policy of not applying duties to subsidised goods from economies such as China's which are designated as
non-market.
In July 2005, China delinked the yuan from the dollar, revalued it by 2.1 per cent and put it into a currency basket system, with a trading limit of only 0.3 per cent either side of the reference rate against the US unit each day.
Since then the yuan has risen by about seven percent, including the initial 2.1 per cent rise.
"Biased advice would damage the fund's role in safeguarding global economic and financial stability," said Hu Xiaolian, deputy governor of the People's Bank of China, according to the China Daily.
"The fund ... should respect its member countries' core interests and actual economic fundamentals," Hu was quoted as saying at the meetings of the IMF and the World Bank in Washington at the weekend.
Officials and economists at the IMF, which has a mandate to give advice to member countries, said Beijing should pursue a more flexible exchange rate, for the sake of both the Chinese economy and a more balanced global economy.
However, Hu said the yuan's role in rectifying global economic imbalances should not be exaggerated, adding that more attention should be paid to growing protectionism so as to safeguard the health of the world economy.
China's major trading partners, led by the United States, have persistently complained that the yuan has been significantly undervalued, giving Chinese exporters an unfair competitive edge of lower prices.
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Trade frictions are rising as the United States, with a 223-billion-dollar trade deficit with China in 2006, last week formally lodged two complaints on copyright abuses in China and market access to the World Trade Organisation.
Last month, Washington decided to impose penalty tariffs on Chinese paper exporters, reversing a 23-year-old US policy of not applying duties to subsidised goods from economies such as China's which are designated as
non-market.
In July 2005, China delinked the yuan from the dollar, revalued it by 2.1 per cent and put it into a currency basket system, with a trading limit of only 0.3 per cent either side of the reference rate against the US unit each day.
Since then the yuan has risen by about seven percent, including the initial 2.1 per cent rise.
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